State Street (NYSE:STT)
Historical Stock Chart
From May 2019 to May 2024
State Street Corporation (NYSE:STT) today announced the results of its
mid-cycle stress test under the severely adverse scenario it developed
consistent with Section 165 of the Dodd-Frank Wall Street Reform and
Consumer Protection Act.
State Street, like other companies covered by the provisions of Section
165 of the Dodd-Frank Act, is required to conduct company-run stress
tests semi-annually and to disclose summary results of those company-run
stress tests under the severely adverse scenario. State Street’s
disclosure can be found in the Investor Relations section of its
website, at http://investors.statestreet.com/.
Forward-Looking Statements
This news release contains forward-looking statements as defined by
United States securities laws, including statements relating to our
goals and expectations regarding our capital plans, involving common
stock dividends and purchases and other capital actions, and
expectations for returning capital to shareholders. Forward-looking
statements are often, but not always, identified by such forward-looking
terminology as “plan,” “propose,” “intend,” “project,” “expect,” “may,”
“will,” “objective,” “forecast,” “outlook,” “believe,” “anticipate,”
“estimate,” “seek,” “focus,” “trend,” “target,” “strategy” and “goal,”
or similar statements or variations of such terms. These statements are
not guarantees of future performance, are inherently uncertain, are
based on current assumptions that are difficult to predict and involve a
number of risks and uncertainties. Therefore, actual outcomes and
results may differ materially from what is expressed in those
statements, and those statements should not be relied upon as
representing our expectations or beliefs as of any date subsequent to
July 27, 2015.
Factors that could cause changes in the expectations or assumptions on
which forward-looking statements are based cannot be foreseen with
certainty and include, but are not limited to:
-
the financial strength and continuing viability of the counterparties
with which we or our clients do business and to which we have
investment, credit or financial exposure, including, for example, the
direct and indirect effects on counterparties of the sovereign-debt
risks in the U.S., Europe and other regions;
-
increases in the volatility of, or declines in the level of, our net
interest revenue, changes in the composition or valuation of the
assets recorded in our consolidated statement of condition (and our
ability to measure the fair value of investment securities) and the
possibility that we may change the manner in which we fund those
assets;
-
the liquidity of the U.S. and international securities markets,
particularly the markets for fixed-income securities and inter-bank
credits, and the liquidity requirements of our clients;
-
the level and volatility of interest rates, the valuation of the U.S.
dollar relative to other currencies in which we record revenue or
accrue expenses and the performance and volatility of securities,
credit, currency and other markets in the U.S. and internationally;
-
the credit quality, credit-agency ratings and fair values of the
securities in our investment securities portfolio, a deterioration or
downgrade of which could lead to other-than-temporary impairment of
the respective securities and the recognition of an impairment loss in
our consolidated statement of income;
-
our ability to attract deposits and other low-cost, short-term
funding, our ability to manage levels of such deposits and the
relative portion of our deposits that are determined to be operational
under regulatory guidelines and our ability to deploy deposits in a
profitable manner consistent with our liquidity requirements and risk
profile;
-
the manner and timing with which the Federal Reserve and other U.S.
and foreign regulators implement changes to the regulatory framework
applicable to our operations, including implementation of the
Dodd-Frank Act, the Basel III final rule and European legislation
(such as the Alternative Investment Fund Managers Directive and
Undertakings for Collective Investment in Transferable Securities
Directives); among other consequences, these regulatory changes impact
the levels of regulatory capital we must maintain, acceptable levels
of credit exposure to third parties, margin requirements applicable to
derivatives, and restrictions on banking and financial activities. In
addition, our regulatory posture and related expenses have been and
will continue to be affected by changes in regulatory expectations for
global systemically important financial institutions applicable to,
among other things, risk management, capital planning and compliance
programs, and changes in governmental enforcement approaches to
perceived failures to comply with regulatory or legal obligations;
-
adverse changes in the regulatory ratios that we are required or will
be required to meet, whether arising under the Dodd-Frank Act or the
Basel III final rule, or due to changes in regulatory positions,
practices or regulations in jurisdictions in which we engage in
banking activities, including changes in internal or external data,
formulae, models, assumptions or other advanced systems used in the
calculation of our capital ratios that cause changes in those ratios
as they are measured from period to period;
-
increasing requirements to obtain the prior approval of the Federal
Reserve or our other U.S. and non-U.S. regulators for the use,
allocation or distribution of our capital or other specific capital
actions or programs, including acquisitions, dividends and stock
purchases, without which our growth plans, distributions to
shareholders, share repurchase programs or other capital initiatives
may be restricted;
-
changes in law or regulation, or the enforcement of law or regulation,
that may adversely affect our business activities or those of our
clients or our counterparties, and the products or services that we
sell, including additional or increased taxes or assessments thereon,
capital adequacy requirements, margin requirements and changes that
expose us to risks related to the adequacy of our controls or
compliance programs;
-
financial market disruptions or economic recession, whether in the
U.S., Europe, Asia or other regions;
-
our ability to promote a strong culture of risk management, operating
controls, compliance oversight and governance that meet our
expectations and those of our clients and our regulators;
-
the results of, and costs associated with, governmental or regulatory
inquiries and investigations, litigation and similar claims, disputes,
or proceedings;
-
the potential for losses arising from our investments in sponsored
investment funds;
-
the possibility that our clients will incur substantial losses in
investment pools for which we act as agent, and the possibility of
significant reductions in the liquidity or valuation of assets
underlying those pools;
-
our ability to anticipate and manage the level and timing of
redemptions and withdrawals from our collateral pools and other
collective investment products;
-
the credit agency ratings of our debt and depository obligations and
investor and client perceptions of our financial strength;
-
adverse publicity, whether specific to State Street or regarding other
industry participants or industry-wide factors, or other reputational
harm;
-
our ability to control operational risks, data security breach risks
and outsourcing risks, our ability to protect our intellectual
property rights, the possibility of errors in the quantitative models
we use to manage our business and the possibility that our controls
will prove insufficient, fail or be circumvented;
-
our ability to expand our use of technology to enhance the efficiency,
accuracy and reliability of our operations and our dependencies on
information technology and our ability to control related risks,
including cyber-crime and other threats to our information technology
infrastructure and systems and their effective operation both
independently and with external systems, and complexities and costs of
protecting the security of our systems and data;
-
our ability to grow revenue, manage expenses, attract and retain
highly skilled people and raise the capital necessary to achieve our
business goals and comply with regulatory requirements and
expectations;
-
changes or potential changes to the competitive environment, including
changes due to regulatory and technological changes, the effects of
industry consolidation and perceptions of State Street as a suitable
service provider or counterparty;
-
changes or potential changes in the amount of compensation we receive
from clients for our services, and the mix of services provided by us
that clients choose;
-
our ability to complete acquisitions, joint ventures and divestitures,
including the ability to obtain regulatory approvals, the ability to
arrange financing as required and the ability to satisfy closing
conditions;
-
the risks that our acquired businesses and joint ventures will not
achieve their anticipated financial and operational benefits or will
not be integrated successfully, or that the integration will take
longer than anticipated, that expected synergies will not be achieved
or unexpected negative synergies or liabilities will be experienced,
that client and deposit retention goals will not be met, that other
regulatory or operational challenges will be experienced, and that
disruptions from the transaction will harm our relationships with our
clients, our employees or regulators;
-
our ability to recognize emerging needs of our clients and to develop
products that are responsive to such trends and profitable to us, the
performance of and demand for the products and services we offer, and
the potential for new products and services to impose additional costs
on us and expose us to increased operational risk;
-
changes in accounting standards and practices; and
-
changes in tax legislation and in the interpretation of existing tax
laws by U.S. and non-U.S. tax authorities that affect the amount of
taxes due.
Other important factors that could cause actual results to differ
materially from those indicated by any forward-looking statements are
set forth in our 2014 Annual Report on Form 10-K and our subsequent SEC
filings. We encourage investors to read these filings, particularly the
sections on risk factors, for additional information with respect to any
forward-looking statements and prior to making any investment decision.
The forward-looking statements contained in this presentation speak only
as of the date hereof, July 27, 2015, and we do not undertake efforts to
revise those forward-looking statements to reflect events after that
date.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150727006275/en/
State Street CorporationInvestor Relations Contact:Kevin
Brady, 1-617-664-3484orMedia Contact:Carolyn
Cichon, 1-617-664-8672